Hyderabad

West firms up as preferred residential, office space

Residential launches in the second half of 2019 across the city were 8,065 units, a six-year high and a 375% year-on-year increase.

Residential launches in the second half of 2019 across the city were 8,065 units, a six-year high and a 375% year-on-year increase.   | Photo Credit: G. RAMAKRISHNA

At 5,176 units, it witnessed highest number of residential units in 2019 second half

An intent and incentives of the government to spread real estate development to areas in the east notwithstanding, west Hyderabad seems to firm up its position as a preferred destination for office and residential space.

Stretching from Kukatpally to Kokapet and encompassing the popular areas of Madhapur, Kondapur, Gachibowli and Raidurgam, west Hyderabad at 5,176 units witnessed the highest number of residential launches in the second half (from July to December) of 2019, a report of real estate consultancy Knight Frank released on Tuesday suggests.

Almost two-third of new units were getting added in the west. Residential launches in the second half of 2019 across the city was 8,065 units, a six-year high and a 375% year-on-year (YoY) increase.

For the full year (2019), residential project launches in Hyderabad registered a 150% YoY jump to 13,495 units, Knight Frank’s India Real Estate report that analysed residential and office market performance across eight major cities said. Residential sales in Hyderabad saw a strong 9% YoY growth in the half year under review and a steady 4% YoY growth in 2019 on account of strong growth in commercial segment activity, the consultancy said.

Branch Director-Hyderabad of Knight Frank India Samson Arthur said demand, supply and investments were showing an upward movement. Backed by a solid performance from the office market, Hyderabad is likely to see a corresponding surge in housing projects.

In contrast to the India’s housing market, Hyderabad is trending as a preferred destination primarily due to demand from IT office growth, immigrant attractiveness and affordable property market, he added.

According to the report, office transactions in Hyderabad clocked an all-time high of 1.2 million sq.m (12.8 million square feet) in transaction volumes in 2019, an 82% YoY growth.

The supply of new office spaces also saw a massive 181% YoY increase to one million sq.m (10.9 million sq ft) in the same period.

Overtakes Bengaluru

Hyderabad overtook Bengaluru in terms of leasing volumes in the second half of 2019 demonstrating strong commercial trends in the market. The growth in transaction volumes can be attributed to increased activity of the IT/ITeS industry and of the co-working sector, a release said.

Demand continues to remain concentrated in west Hyderabad, mainly in and around the HiTec City. “Primarily driven by the organic growth of technology and ITeS companies, this demand is expected to remain stable in the near future. Most of the large new projects are planned in and around HiTec City and Gachibowli and a similar quantum is proposed in the micro-markets of Nanakramguda, Financial District and Kokapet where large lands are available,” he said.

To queries, Mr. Arthur said the eco-system available in west Hyderabad coupled with availability of large land parcels, at prices that comparatively are affordable, is a major attraction. In east Hyderabad, getting the quantum of land at the right price is sometimes a challenge.

“In fact, land price in east is not low. Lack of demand may keep the rental low… but with high land prices it becomes unviable,” he said.

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Printable version | Jul 7, 2020 7:54:42 PM | https://www.thehindu.com/news/cities/Hyderabad/west-firms-up-as-preferred-residential-office-space/article30506879.ece

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